Binance is suspected of illegally providing digital asset services to local customers, and implementing poor money laundering checks.
Binance’s French unit is under investigation by local authorities for the „illegal” provision of digital asset services and „acts of aggravated money laundering,” the Paris public prosecutor’s office told CoinDesk.
The investigation relates to illegally operating as a digital asset service provider before it received regulatory approval in May 2022 and „aggravated money laundering by taking part in investment operations, concealment and conversion, the latter being carried out by perpetrators of offenses having generated profits,” the public prosecution office told CoinDesk. Binance is registered as a PSAN, or digital asset service provider, with the French financial regulator, the AMF (Autorité des Marchés Financiers).
The investigation has been ongoing since February 2022, with Binance suspected to have fallen short of its know-your-customer (KYC) procedures which is necessary to prevent platforms from being used for money laundering activities. Authorities also stated that the crypto exchange advertised its services to potential French customers before obtaining registration in May 2022.
Binance statement on twitter:
„In France, on-site visits by regulators and inspectors, are part of regulatory obligations to which all financial institutions must adhere. We had an on-site visit last week by the relevant authorities. Binance, as always, was fully collaborative and we met our obligations accordingly.
We continue to work closely with regulators and law enforcement agencies on all ongoing compliance requirements to uphold high standards. Binance invests considerable time and resources into cooperating with law enforcement globally.
We abide by all laws in France, just as we do in every other market we operate. We will not comment on the specifics of law enforcement or regulatory investigations except to say that information about our users is held securely and only provided to government officials upon receipt of documented appropriate justification.”
Changpeng Zhao – Binance CEO says on twitter:
„In France, surprise (no advanced notice) on-site inspections of regulated businesses are the norm, for banks, and now for crypto too. The surprise visit for Binance France happened a couple of weeks ago. It’s not „news”. Binance France cooperated fully. Binance also isn’t the only crypto business inspected. This happened to other well known crypto businesses in Paris too.”
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Many more interesting quotes in the video below:
